1 Introduction

we’ll still use Credit to demonstrate multiple regression with:

  1. A numerical outcome variable y, in this case credit card balance.

  2. Two explanatory variables:

    • A first numerical explanatory variable \(x_1\). In this case, their credit limit.

    • A second numerical explanatory variable \(x_2\). In this case, their income (in thousands of dollars).

2 Exploratory data analysis

Let’s load the Credit data and: